West Coast Nut April 2021

Continued from Page 7
Nuts and the Trade War
The Trade War Drags on
for U.S. Pistachios, but
Business is Looking Up
Tariffs continue to challenge the West Coast tree nut industry (photo courtesy Almond Board of California.)
For the U.S. pistachio industry,
the most significant tariff issue
continues to involve China.
“China was our No. 1 export
destination but has dropped to
No. 2 as a result of the tariffs,” said
Richard Matoian, president of
American Pistachio Growers. “We
still have the same tariffs in place
today as we’ve had for the last year:
50% on raw pistachios and 30% on
roasted.”
In 2020, the higher tariffs plus
COVID-19 restrictions disrupted
the normal supply chain between
the U.S. and China. Fewer containers
were making their way to
American shores.
“This caused a large increase in
prices for containers, if you could
U.S. pistachios continue to face significant tariff issues with China, a major market
(photo by C. Merlo.)
find them when you needed them,”
Matoian noted.
Additionally, Iran’s improved
crops between 2018 and 2020 allowed
the Middle Eastern country
to replace U.S. pistachios in China.
“While U.S. product may have
certain quality and consistency
advantages, it’s difficult to compete
in any market when a tariff
is imposed only on your product,”
Matoian said.
President Biden had spoken
with Chinese President Xi Jinping,
added Matoian, but no tariff reductions
have been announced by
either side. In fact, President Biden
was quoted as saying the tariffs
will remain in place.
Even so, as of late February, U.S.
pistachio business with China was
picking up.
“Shipments to China for the
current crop year, starting September
1, 2020, are up 16% year
over year, so things are better than
last year,” Matoian said. “Overall,
exports to date are up 18.5% over
the same time last year.”
8 West Coast Nut April 2021